AUTONEWS

US government turns to ethanol to offset the rise in gasoline

In a bid to ease the pressure on gas prices, the Biden administration is easing rules on the use of ethanol during the summer driving season

The White House said President Biden “is committed to doing everything he can to address the pain Americans are feeling at the pump as a result of Putin’s Price Hike. The administration’s strategy to spur the development of homegrown biofuels is critical to expanding Americans’ options for affordable fuel in the short-term and to building real energy independence in the long-term by reducing our reliance on fossil fuels.

“Today, the President is announcing new steps to achieve that goal by increasing fuel supplies, offering more consumer choices, and reducing gasoline prices for Americans,” the White House added, while Biden was visiting Iowa, the center of the ethanol industry.

The announcement comes on the heels of the White House’s order to release 1 million barrels of petroleumper day from the national Strategic Petroleum Reserve. That move also aimed to blunt increases in the price of gasoline, which has contributed to a surge in inflation across the economy.

Gas prices on the decline...AAA reported this week the national average for a gallon of gas is $4.11, which is seven cents less than a week ago, 22 cents less than a month ago, and $1.25 more than a year ago.

The statement issued by the White House explains the EPA is expected to take final action to issue the emergency waiver on the restrictions on the use of ethanol fuel blends before June 1. The fuel blend, however, could not be sold in most markets during the summer driving season, from June 1 through Sept. 15.

The Trump administration previously sought to change the rule limiting the use of ethanol during the summer months. However, a change in the rule by the EPA was challenged by the oil industry and in June 2021 the D.C. Circuit Court of Appeals vacated the portion of the June 2019 rule related to E15, overturning the ability of fuel retailers to sell the fuel blend year-round, according to Ethanol Producers magazine.

Waiver allows E15 to be used during summer...The emergency waiver the EPA is expected to issue will again allow E15 to be sold during the summer driving season, the magazine said.

According to the White House, the emergency waiver allowing summer sales of E15 is expected to help increase fuel supplies, give consumers more choice to get lower prices, and provide savings for many families.

“At current prices, E15 can save a family 10 cents per gallon of gas on average, and many stores sell E15 at an even greater discount,” the White House said in a fact sheet.

“For working families — families eager to travel and visit their loved ones — that will add up to real savings. Allowing higher levels of blending will also reduce our dependence on foreign fuels as we rely more heavily on homegrown biofuels. This will help us bridge towards real energy independence,” the White House said.

The changes to the ethanol regulation were criticized by environmentalists, concerned about the threat to public health.

“This decision means the ethanol lobby will be happy and kids with asthma will be sicker,” said Dan Becker, director of the Safe Climate Transport Campaign at the Center for Biological Diversity, in a statement.

“Adding more ethanol to gasoline creates more smog and is unlikely to lower gas prices much, if at all. This rule will probably save people less at the gas pump than what they can save by making sure their tires are properly inflated.

“However well-meaning it might be, kids and the elderly shouldn’t pay the price with their health for slight gas savings. Rather than caving to the ethanol lobby, the administration should require cleaner cars that sip gas rather than guzzling it and advance electric-car manufacturing,” Becker said.